Where do all the low-mileage year-old 'nearly new' cars I've seen for sale come from?

I want to buy a car but would rather not pay for a brand new one and instead go for a 'nearly new' option.

I’ve seen some cars for sale with dealers, often under manufacturer approved schemes, that are only a year old and have very low mileage of about 10,000.

These seem like a good deal as they could save me thousands off the price of a new car, but I’m worried about why someone would get rid of an almost brand new car.

Where do all these nearly new cars come from?Via email

Nearly new: If you're in the market to replace your car then the term 'nearly new' is one you're likely to come across. But what does it mean for you as a buyer?

Rob Hull, of This is Money, replies: The overwhelming majority of these 'nearly new' cars you see for sale haven't been owned by individuals but by fleets, which should dispel some of the fears you had regarding why someone would want to offload a barely used vehicle so quickly.

These cars can represent real value to you as a buyer, though it's imperative that you thoroughly check the vehicle over before you purchase.

A brand new car depreciates as soon as it leaves a showroom, and the steepest period of value loss occurs during the first year. That means the first-registered owner will have borne some of the losses for you and you will retain a greater percentage of what you paid when it comes time to sell the model yourself.

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Firstly, your choice will be far more restricted than if you bought new. Okay, you might be able to find the fuel type and engine size you want, but the equipment in the car will be limited to what was factory ordered when it was built.

In many cases with fleet cars this means luxuries are almost non-existent, unless you're in the market for a high-end premium model.

Most will be quite basic and without some of the features you'd ideally want. If you're after a model with in-built sat-nav, leather seats, large wheels and additional infotainment add-ons, you might struggle to find what you're looking for. The colour choice will also be restricted - most fleet cars are ordered in shades with the strongest resale values, like black, white, silver and red.

There is nothing unusual about ‘nearly-new’ cars. In fact, Auto Trader currently has more than 60,000 such vehicles listed and they represent great value for money. Jon Quirk, Auto Trader editor in chief

There's also the uncertainty around the condition of the vehicle. Some will be lease cars with one careful owner - these are the ones you need to snap up. Others, though, could have been treated roughly - especially if it was formerly a hire car - as the driver may not have taken the same pride in ownership like they would a vehicle they paid for themselves.

One bit of peace of mind is that all these cars will have been serviced by a franchised dealer and have a water-tight maintenance record.

An important element to inspect closely on all nearly new cars is the paint. Many leased vehicles and hire cars would have been through car washes on a regular basis, which can have an effect on the longevity of the paintwork. Look for any signs of fading and check the plastic bumpers match the colour of the other panels.

Most ex-fleet cars will be relatively basic without some of the luxuries you might want from your next personal vehicle

Jon Quirk, editor in chief of Auto Trader, replies: Auto Trader describes a ‘nearly-new’ car as one less than 12 months old or with no more than 5,000 miles. However, this also encompasses pre-registered or ‘pre-reg’ vehicles, effectively new cars that have been registered by a dealer and therefore considered used. Whereas a ‘new’ car is simply a new, unregistered vehicle.

One bit of peace of mind is that all these cars will have been serviced by a franchised dealer and have a water-tight maintenance record. Rob Hull

The reason ‘nearly-new’ cars like this exist is because not every car built goes to a private buyer. Today’s car companies are operating in a global marketplace and rely on huge economies of scale to maintain consistent pricing to the consumer.

Sometimes, that means there may be more supply than demand and in those circumstances, carmakers have a choice to encourage its retail network to absorb some of this excess stock as dealer demonstrators, or to look to the company car market.

More than 50 per cent of Britain’s new car sales are in fact company cars, with a large proportion leased by major blue-chip companies and rental firms.

Jon Quirk, editor in chief at Auto Trader, said more than 50% of Britain’s new car sales are company cars, with a large proportion leased by major blue-chip companies and rental firms

These companies usually have company car replacement cycles that are triggered by either the age or mileage of a vehicle and we tend to notice a surge in these types of cars coming onto the site in September and March, just after the number plate change.

There is nothing unusual about ‘nearly-new’ cars. In fact, Auto Trader currently has more than 60,000 such vehicles listed and they represent great value for money.

It's worth remembering that most cars will take their biggest hit of depreciation in the first year of ownership, so depending on the vehicle, you could expect to save as much as 30 per cent over an equivalent brand new car.

Granted, your name may not be first in the logbook, nor would you be able to specify the exact car you wanted, but you’d have a lot more cash left in your back pocket, you wouldn’t have to wait to take delivery and you’d still have the peace of mind of a manufacturer warranty.

If you are buying on finance, make sure you shop around to find the best rate and be mindful of the length of the warranty agreement - a manufacturer’s warranty starts to run from the moment a car is first registered.